Journal of Business and Administrative Studies

Abstract

In Ethiopia, Addis Ababa City Administration is implementing business process
reengineering in order to improve the performance of its public institutions.
During the period June to October 2008, experts drawn from different sectors
participated in the redesigning and organizing of business processes through
shifting from functional /departmental structure to process-centered organizing
practices. This study is part of the initial evaluative studies to assess the effect of
business process reengineering on the management of human resources in Addis
Ababa City Administration. It is based on a sample of 480 employees drawn from
various city departments. Focus group discussions, key informant interviews and
personal observations were used to collect data for the study. The study results
show that the number of employees in the city increased after reengineering. This
was due to new posts created during the reengineering process through the
decentralization of some processes to the local levels (sub-city and kebele levels)
of the city. Study results further show that even though process selection was
adequately done in many departments, some activities were not properly
regrouped after processes were redesigned which resulted in multiple approvals
and delays in decision making. Employee participation during reengineering was
weak. The front line employees did not get sufficient information and proper
performance evaluation was not undertaken. Managers were not involved in the
designing, coaching and advocacy roles, and are still engaged in operational and
routine activities. Employee satisfaction was found to be low because there is no
incentive system. However, employees’ efforts to achieve the set standards and
improve service delivery and their initiation for change improved despite the fact
that the system as whole is not automated. Further, accountability and
responsibility of management also improved as a result of the BPR.